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Rates unlikely to rise if visa abuse resolved

Following up on Bill Goodwin’s item in Computer Weekly Tuesday 17th June 2003 and also his earlier items in Computer Weekly on 20th May 2003, and 18th June 2003.

Contractors will be aware of the continuing complaints to the government agency Work Permits (UK) about the alleged abuse of the system with regard to overseas workers. This has prompted industry bodies & representatives to seek a meeting with the government this month. The PCG have been heavily involved in driving this process.

It is very hard to understand that if indeed there is an excess over demand in today’s marketplace, how come that Work Permits (UK) are continuing to grant work permits at the same high volumes. As industry watchers have asked – why hasn’t the number of work permits granted gone down to reflect today’s environment? – something doesn’t add up here.

The optimistic outcome of the meeting could lead to a tightening up of the scheme and reinforce the protection of UK jobs. However, even if employers are forced to advertise IT vacancies, market forces are likely to continue the trend toward lower rates as, assuming the skills requirements are met (including by overseas staff), the employer will look for the lowest cost employment solution in order to remain competitive in their particular market segment. We are seeing a growing trend by many blue chip companies outsourcing IT to Asia.

Whilst the somewhat altruistic idea of a level playing field is desirable; IT staff should not be over optimistic about the future.

The pragmatic message for all IT staff is clear: don’t hold your breath waiting for a fast effective resolution of the visa permits issue; continue to report abuses to Work Permits (UK); maintain and develop personal skills as those players with valuable technical skills will continue to command the highest rates.

Published: Wednesday, 18 June 2003

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